📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    Question

    Why must auditors obtain an understanding of internal

    control even if they do not intend to rely on it?
    A Because law requires it. Correct Answer Incorrect Answer
    B To identify risks of material misstatement and design appropriate audit procedures. Correct Answer Incorrect Answer
    C To reduce sampling risk. Correct Answer Incorrect Answer
    D To avoid reliance on substantive testing. Correct Answer Incorrect Answer
    E Only to satisfy regulators. Correct Answer Incorrect Answer

    Solution

    Understanding internal control helps assess risks of material misstatement and design audit procedures, even if controls are not tested for reliance.

    Practice Next
    More Auditing Questions
    ask-question